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Redemption of Debenture was enacted into Indian law in 2000. It states that any Indian company with a debenture trust must also have a plan in place for its investors, in case of the company's failure.

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Q: What is the meaning and definition of redemption of debenture?
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Related questions

After redemption of debenture debenture reduption reserve where to transfer whether in PL Ac or in General reserve.?

After redemption of debentures, debenture redemption reserve is to be transferred to general reserve.


Difference between Debenture Redemption Reserve and Capital redumption Reserve?

The Capital Redemption Reserve is a fund that secures a creditor. Debenture Redemption Reserve is for the purpose of security payments only.


What is Debenture Redemption Reserve?

Debenture is a debt instrument to raise funds. It has a maturity period associated with it. At the end of the maturity, the company(borrower) should return the interest and principal amount. Debenture Redemption Reserve is an amount kept as reserve for paying the debenture holder at the end of the maturity period.


What is the Legal definition of All Assets Debenture?

what is an all assets debenture


Why premium on redemption of debenture credit at the time of issue of debenture?

It is capital loss of the company. It comes only in the time when redeem debenture. It is shown when we issue the debenture because it is one of the redeemable condition. it is loss of future but comes in balance sheet as separate account the name of premium redemption account in liability side so, it is carried at the time of issue.


Examine Debenture can be redeemed only out of capital?

No Debentures can not be redeemed out of capital only. Gov of India and SEBI has indirectly placed restrictions on redemption of debentures. Now it is compulsory to create Debenture Redemption Reserve at-least 50% of the debentures issued.


What are the reasons for the creation of debenture redemption reserve fund?

Indian Companies Act of 1956 added during an amendment in the year 2000. It states Indian company that issues debentures must offer debenture redemption service to protect investors against the possibility of company default. If a company does not create a reserve within 12 months of issuing the debentures, they will be required to pay 2 percent interest in penalty to the debenture holders. Only debentures that were issued after the amendment in 2000 are subject to the debenture redemption service.


What is redemption of debentures using purchase of own debenture?

A company can buy its own debenture in the open market, if it is authorised by its AOA. the debentures so purchased can be used either for immediate cancellation or redemption of debenture or for investment. the debenture so purchase for investment can be subsequently either be issued to fullfill additional requirements of cash or can be cancelled if the company so desires. debentures when purchases for investment are popularly known as 'OWN DEBENTURES.'


What is the meaning of debenchur?

Do you mean debenture?


What do you mean by ex-interest in issue and redemption of debentures in company account?

Whan compay purchase debenture from the open market


What is meaning of pari passu clause in a debenture?

equally without preferance


The idea of paying a price is the meaning of the word?

Redeem or redemption.